Posted on 02/25/2009 12:47:21 PM PST by Munz
“Tax expenditures” for individuals totaled about $760.5 billion in 2007, topping what the federal government spent on either national defense or all non-defense discretionary programs, a new analysis by the Urban Institute-Brookings Institution Tax Policy Center (TPC) shows.[1]
In most cases, these tax expenditures are also regressive — that is, they benefit high-income taxpayers the most. In light of their high cost and regressive nature, they should be “on the table” when efforts to address the nation’s long-term budget problems are mounted.
(Excerpt) Read more at cbpp.org ...
Only a Liberal Democrat Socialist can call taking money that doesn’t belong to them an “expenditure.”
Not this crap again.
They ran “tax expenditures” up the flagpole in the 70’s. What it really means is they want to take away all our deductions and convert them into tax credits that go to folks who paid no taxes in the first place. To finance that, they will raise taxes on the folks who have been paying taxes all along. I hate these people.
Yup.
I love how cutting taxes is called “spending.” Like it was the government’s money all along.
I can hardly speak. This perversion of language is disgusting. Do they really think that they would collect that much more tax if the tax exemptions were not there? Of course not. People would just divert their efforts into less taxed activities. Eliminating deductions would amount to a massive tax increase. This perverse nomenclature plants the axiom that all income belongs to government, and any money the taxpayer has left over is an “expenditure” from the government to the taxpayer. Barf alert!
Here we go! This report lists retirement investment income. Read: your IRA and 401-K income. I predict they will go after this while the returns are negative so that fewer people will object.
Note also that this “report” lists capital gains, but neglects to point out that any capital gains represents double taxation.
>>Read: your IRA and 401-K income. I predict they will go after this while the returns are negative so that fewer people will object.<<
It is a given at this point that they will go after them. How will he possibly be able to spread the wealth if it is tied up in your retirement? You are silly!
Go to bed, you have to get up to work early in the morning. Obama’s people are counting on you to support them.
Can you explain what you mean about going after IRA and 401K.
Sorry to take so long to answer. I work for a living and I got busy.
IRAs are Investment Retirement Accounts. 401Ks are another, newer, type of tax deferred savings account. They are both ways for people to save “before tax” income for retirement. When I put $100 into either of these accounts I do not pay taxes on that $100. Therefore, my taxable income is reduced by that $100. Furthermore, the gains on investments made using the funds in these accounts are also not taxed. All taxes are deferred until retirement age when withdrawals are made. Usually, at that time the person will be retired with a lower income and thus, the money will be taxed at a lower rate.
Thank you. I know what they are, but how do you “predict they will go after this while the returns are negative so that fewer people will object.”
My friend is ready to cash out her 401K, penalties and all, because she is sure the government is going to forcibally take over the money. Is that what you mean?
Don't advise that. Diversify the fund if need be but cashing out is monetary suicide.
There have been rumors that the Feds would attempt to take control of the funds. I would really be surprised if this happened. Legally, they have no “ownership” rights. Even your employer does not have any rights. However, do believe that they may remove the tax advantage of these funds so that in future years you would not be able to add to these funds and future gains may not be tax sheltered.
I would like to point out that cashing out of any equity position at this point should only be done if you believe you are protecting yourself from further declines. This would be a REALLY poor time to conduct a “wash sale”. Remember that future earnings are very likely to be subject to increased capital gains taxes. On the other hand, if you keep your current positions, you will not be changing the “cost basis”.
Thank you.
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